Inflation slows sharply to 1.7% in April as consumer carbon price ends

By Canadian Press on May 20, 2025.

OTTAWA — The end of the consumer carbon price at the start of April drove inflation down sharply, but there were signs of pressure building at the grocery store last month.

Statistics Canada says the annual inflation rate was 1.7 per cent in April, down from 2.3 per cent in March.

The agency says gasoline prices fell 18.1 per cent year-over-year, thanks mostly to the federal government striking the consumer carbon price at the start of April.

But that relief did not extend to the grocery store, with prices there rising faster than the overall consumer price index for the third straight month.

Statistics Canada says fresh vegetables, beef and coffee and tea were some of the items costing Canadians more on an annual basis.

The April inflation figures come a little more than two weeks before the Bank of Canada is set to make its next interest rate announcement on June 4.

This report by The Canadian Press was first published May 20, 2025.

The Canadian Press

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